Forex Today – Asian Session: Pending Correction for the Dollar Just Around the Corner

What you need to know on Friday, November 12:

The dollar continued to advance in the absence of another catalyst that could divert investors’ attention from skyrocketing inflation. Poor UK data fueled the depressing mood as the UK reported 1.3% quarterly growth in the three months to September, much worse than the 5.5% previously and 1.5% expected. Industrial production, business investment and the country’s trade balance also disappointed expectations, hinting at a more conservative BOE and pushing GBP / USD to a new 2021 low of 1.3359.

The EUR / USD pair also fell to its lowest level for this year, reaching 1.1445 and ending the day a handful of pips above it. In the case of the shared currency, the peso comes from central bank imbalances, since although the Fed has already started to adjust and may have to accelerate its pace, the ECB maintains a conservative stance.

AUD / USD is below 0.7300 following the release of dismal Australian data and underperforming equities. The USD / CAD pair is flirting with the 1.2600 level, trading at a new one-month high.

Gold maintained its strength, advancing for the sixth day in a row. The spot is trading above $ 1,860 a troy ounce and has room to extend its rally to $ 1,900. Crude oil prices ranged between gains and losses, and the WTI ended the day little changed at $ 81.50 a barrel.

The USD is extremely overbought and may correct lower before the weekend, although it will likely maintain its strength.

The United States had a holiday with the bond markets closed. Wall Street opened, with the DJIA falling deeply, while other major indices posted uneven gains.